The defunct Kingfisher Airlines, which owes around Rs 9,000 crore to various banks, had used a valuation of Rs 4,100 crore (done by a consulting firm in 2011-12) for its brand as the single largest collateral for its loans.
However, an evaluation done by the lenders through another firm in 2013 found the valuation to be around Rs 200 crore, or five per cent of the valuation by the previous firm.
A subsequent valuation done in 2015 pegged it at Rs 100 crore.
This assumes significance in the context that Kingfisher Airlines’ operating licence was suspended in October 2012 by the Directorate General of Civil Aviation. The airline shut shop in October 2012.
According to sources, 2nd consulting firm has highlighted the fact that the rights that have been assigned to the banks are only pertaining to ‘Kingfisher’ registered under the Class 39 under the Trade Marks Act, 1999. Class 39 broadly refers to — transport; packaging and storage of goods; travel arrangement, etc.
The banks do not have any right over the intangibles or brands of Kingfisher Beer and beverage business category.
The first consulting firm is reportedly under the scanner of the Serious Fraud Investigation Office, which is looking into the brand evaluation carried out by the firm for the Kingfisher Airlines.